Chicago v. Fulton
View Official PDFSummary
A short, plain-English overview of Chicago v. Fulton.
In Chicago v. Fulton, the Supreme Court addressed whether the retention of estate property after a bankruptcy petition violates Section 362(a)(3) of the Bankruptcy Code. The Court concluded that mere retention does not violate the provision, as it prohibits affirmative acts that disturb the status quo of estate property. The decision vacated and remanded the Seventh Circuit's ruling.
Holding
The single most important “bottom line” of what the Court decided in Chicago v. Fulton.
The Court held that the mere retention of estate property after the filing of a bankruptcy petition does not violate § 362(a)(3) of the Bankruptcy Code.
Key Quotes
Short excerpts from the syllabus in Chicago v. Fulton that support the summary and concepts above.
The mere retention of estate property after the fling of a bankruptcy petition does not violate § 362(a)(3) of the Bankruptcy Code.
§ 362(a)(3) prohibits affrmative acts that would disturb the status quo of estate property.
Respondents' alternative reading would create at least two serious problems.
